Debunking Utopia

“If this book achieves the distribution and recognition that it should, the last redoubt of socialist ideology in the alleged actual existence of well-functioning democratic socialist welfare states will collapse. Sanandaji is systematic and innovative in the use of historical and empirical data in explanation of the Nordic experience.”

“Sanandaji’s previous writings on the roots of Nordic success have gained media attention around the world and been translated into many languages. Debunking Utopia, which expands on this work, should be read by all liberals and conservatives alike who follow the debate over the future of American welfare.”

“Sanandaji thinks that a much better explanation for the economic success of Scandinavia is culture. If you look at the years in which these countries built the wealth their citizens now enjoy, it was long before leftist ideas took hold. For instance, from 1870 through 1936, Sweden was the fastest growing economy in the world. But after 1975—when the Swedish state began to expand in earnest—Sweden’s economy noticeably slowed, falling from the 4th richest in the world to the 13th by the mid 1990s.”

“Nima Sanandaji, a Swedish policy analyst and president of European Centre for Entrepreneurship and Policy Reform, has recently published a book called “Debunking Utopia: Exposing the Myth of Nordic Socialism.” And while the title may be overstated, his best facts and figures are persuasive.”

“Sanandaji makes the acute observation that when Scandinavian emigrants left for the United States, those cultural attributes went with them and produced the same good effects. Scandinavian-Americans have higher incomes and lower poverty rates than the US average. Indeed, Danish-Americans economically outperform Danes still living in Denmark, as do Swedish-Americans compared with Swedes and Finnish-Americans compared with Finns. Scandinavian culture has been a blessing for native Scandinavians — and even more of one for their cousins across the ocean.”

“Economic freedom has increased in Sweden while it has declined in the U.K. and U.S. Sweden’s relative economic performance has improved accordingly,” [Sanandaji] said. “Since these reforms, and the reduction in taxes from the very-high levels of the 1970s to mid-1980s, Swedish relative economic performance has improved.”

“Overall, Sanandaji’s book provides plenty of insights and a coherent explanation for the rise of the Scandinavian nations and their welfare states. Their impressive standard of living is a free-market story, which is rooted in an economically sound culture. This culture also supported the welfare state, until decades of destructive incentives eroded the nations’ sound values. The welfare state, after its radicalization, was soon crushed under its own weight, and Scandinavia has since undergone vast free-market reforms that again have contributed to economic growth and prosperity.”

Dr. Sanandaji has appeared in a number of American talk shows, amongst others in the Tom Woods show.

The Norwegian Liberalistene party invited Dr. Sanandaji to give a seminar speech about The Nordic Culture of Success, during the party’s annual convention of 2017.

Nima Sanandaji talks about his upbringing in Sweden, in a welfare supported family, during which he experienced both the supportive side and the welfare entrapment side of Nordic welfare policies.

Dr. Nima Sanandaji has written three books, two policy reports and a book chapter on the topic of the Nordic Culture of Success, and The Myth of Nordic Socialism. The books have been widely cited in international media, and in part and full into Spanish, Polish, Farsi, French, German and Korean.

The key points made about the Nordic model:

1) The social, health and economic success of Nordic countries is not due to socialism, but a Nordic Culture of Success. Dr. Sanandaji has phrased this in The surprising ingredients of Swedish success to describe the unique culture of work and responsibility that has evolved through the generations in the Nordic nations.

2) Socialism has never been a success in Nordic countries. The research presented in Scandinavian Unexceptionalism and Debunking Utopia conclusively shows that policies such as high taxes, labor market regulations and overly generous welfare regimes have created the same problems in Nordic countries as elsewhere. It is time to bury The Myth of Nordic Socialism.

3) The main problem of Nordic welfare regimes is not about how it influences the economy, but rather how it influences deep-rooted social institutions such as working ethics and personal responsibility. In a chapter in Self Control or State Control Dr. Sanandaji elaborates on the Welfare Trap that exists in the Nordic countries. Over the generations, social democratic policies have eroded responsibility norms in the Nordics.

4) During the end of the 19th century and the first half of the 20th century, Nordic countries thrived by relying on small government policies. While the US turned towards state intervention during the Great Depression, the Nordic countries bounced back by relying on entrepreneurship and market forces. The often neglected Nordic Free Market Success Story also relates to wide-ranging market liberalizations during recent decades.

5) Nordic societies have for centuries been uniquely gender equal. Today the Nordic welfare states today top most gender equal rankings. The same countries however have surprisingly few women top-managers. Dr. Sanandaji shows in The Nordic Gender Equality Paradox that key aspects of Nordic welfare policies (un)intentionally hinder women’s career progress. High tax wedges, public welfare monopolies, Nordic-style social insurance systems and generous parental leave programs hinder, and reduce the incentives for, women’s progress in the career ladder.